Bangladesh Faces $770 Million Hit Due To India’s Curbs On Trade

India has imposed import restrictions on several Bangladeshi goods. This move could impact $770 million (Rs 6,600 crore) worth of trade via land borders.

Ajay Srivastava, founder of Global Trade Research Initiative (GTRI), said, “Readymade garments worth $618 million (Rs 5,290 crore) can now enter India only through two seaports.” He added that this restriction blocks Bangladesh’s biggest export route into India.

India also barred the land entry of items like fizzy fruit drinks, processed foods, cotton waste, plastic goods, and wooden furniture. These goods account for $153 million (Rs 1,310 crore) in trade.

On Saturday, the Directorate General of Foreign Trade (DGFT) issued a notification. It enforced port restrictions on these goods with immediate effect.

The DGFT clarified that goods headed for Nepal and Bhutan via India are exempt from the ban.

According to the order, “Import of all kinds of readymade garments from Bangladesh is now allowed only through Nhava Sheva and Kolkata seaports.” It added, “Land Customs Stations (LCSs) and Integrated Check Posts (ICPs) in Assam, Meghalaya, Tripura, and Mizoram, as well as LCS Changrabandha and Fulbari in West Bengal, cannot be used.”

However, India has not restricted items like fish, LPG, edible oil, and crushed stone. These will still be allowed through land ports, the DGFT said.

Policy shift follows Bangladesh’s yarn ban

Earlier in April, Bangladesh restricted yarn imports from India through land ports. The country’s National Board of Revenue issued that order.

Meanwhile, India had already withdrawn a facility that let Bangladesh ship goods to other nations via Indian ports and airports.

India remains Bangladesh’s second-largest trading partner after China. In 2022–23, total trade between the two stood at $16 billion.

Bangladesh imported $14 billion worth of goods from India. In contrast, it exported just $2 billion, according to industry figures.